John M. Zerwas, M.D.

pen an organization’s “checkbook” and you should clearly see its moral and ethical compass, its vision and its mission. I believe ASA is no exception to this rule. Through its House of Delegates (HOD), the Society strives to bring the voice of the membership to all of its deliberations and decisions. Approximately two-thirds of the annual budget is dedicated to those programs and initiatives that the HOD deems most relevant to the integrity of the practice of anesthesiology and value to the membership.

Upon review of the budget for the past several years, it is clear that ASA is dedicated to bringing relevant education and resources to its members that will foster the development and communication of new knowledge. Our Foundations are an example of this, where we have spent approximately 10 percent of our annual income to promote patient safety (Anesthesia Patient Safety Foundation [APSF]), foster new knowledge (Foundation for Anesthesia Education and Research [FAER]) and preserve our rich history (Wood Library-Museum of Anesthesiology [WLM]). This is in addition to the numerous committees and initiatives that ASA has created at the direction of the HOD. The ASA Annual Meeting is considered the premier venue for educational opportunities for anesthesiologist worldwide. Likewise, the journal Anesthesiology is among the best of all medically oriented publications. On the whole, more than 40 percent of our revenue is dedicated to promoting new and current knowledge in anesthesiology.

In addition to our commitment to clinical excellence and safety, ASA has a primary role in advocacy and practice management. Our Washington Office staff is among the most respected on the Hill and has had a terrific impact on our behalf over the years. The Legislative Conference is a sell-out every year, and our ASA Political Action Committee is among the most effective political action committees. Similarly, our annual Conference on Practice Management continues to set record numbers in attendance and has become the “must attend” conference for many of our members. In all, we spend approximately 15 percent of our annual revenues toward practice management and advocacy-related activities.

The financial affairs of the Society are delegated to the Section on Fiscal Affairs (SFA), with ultimate authority granted to the ASA Board of Directors. This section consists of the treasurer, the assistant treasurer and members of the Committee on Finance of the Board of Directors. All actions and reports of the SFA and the board are subject to review and/or approval by the House of Delegates.

The fiscal year for ASA is also the calendar year, which is typical for many organizations and businesses. Though we were budgeted for a slight net loss this past year, the budget came in with a very strong bottom line at more than $2.2 million. This considerable swing from budget to actual is related to unbudgeted revenue from publisher Lippincott Williams & Wilkins and to the conservative spending by the committee chairs and members. The 2007 budget is also targeted for a net loss, but year-to-date is tracking very close to the prior year performance. Our total assets continue to grow as a result of our strong financial management in the Park Ridge, Illinois, office as well as a sound investment strategy. Our audit occurs annually by the firm of Blackman & Kallick. There have been no concerns or recommendations from our auditors.

The budgeting process begins early in the fiscal year when a request is made to all committee chairs to submit a budget request for the following year. This documentation is then compiled along with the proposed budgets for the Park Ridge and the Washington offices. The SFA meets at the March meeting of the Board of Directors and considers funding proposals from APSF, FAER and WLM and makes recommendations to the Budget Committee on their funding as well as other issues of importance to creation of the next year’s budget. The Budget Committee (consisting of the president, president-elect, first vice-president, treasurer and assistant treasurer), along with ASA staff, then meets in the late spring to create a draft budget. This budget goes to the Administrative Council for consideration and approval in June and is subsequently presented at the Board of Directors meeting in August for approval. Final approval is vested in the HOD at the Annual Meeting. Modifications to the budget can and do occur throughout the year at the discretion of the president and the board within rules established by the Society.

The ASA balance sheet reveals a very strong cash and cash equivalent position. ASA’s assets at the end of the 2006 fiscal year were in excess of $60 million and have continued to grow through the 2007 fiscal year. The Society’s assets are invested in a diversified portfolio that reflects a balance of 35 percent fixed assets and 65 percent equities.

This investment strategy was fully implemented in January 2007 and has yielded a return of more than 14 percent from July 2006 to June 2007. The firm of DiMeo Schneider & Associates manages the overall portfolio and meets with the SFA on a quarterly basis by conference call or in person.

In conclusion the 2007 ASA fiscal checkup reveals a strong and vibrant Society dedicated to creating member value. The mission, vision and values of the Society continue to be the lighthouse that guides the budgeting process. I thank all the members of the SFA for their hard work and dedication: James D. Grant, M.D. (Assistant Treasurer), James M. West, M.D. (Committee on Finance Chair), Karl E. Becker, Jr., M.D., Richard R. Johnston, M.D., Lawrence J. Roy, M.D., and Kenneth I. Mirsky, M.D. I also commend our current President, Mark J. Lema, M.D., Ph.D., for his hard work and prudent financial decisions as he leads this great Society.

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